National Cranberry Cooperative Case Study Essay

1261 Words6 Pages
National Cranberry is a cooperative of berry growers around North America that share common production facilities and for the last several years have been experiencing capacity bottlenecks among other issues. After initial analysis, two main factors that contributed to a decrease in production were found. The first issue in the business is that the supply trucks and drivers delivering the harvest were not properly organized and there was not enough space and organization to allow for smooth offloading of several trucks a day. The second major issue is the rampant absenteeism and need for overtime work based on shortage of workers. This has driven the cost of running the business up and drastically reducing profitability. A lesser but…show more content…
Nevertheless, some trucks had to wait for up to 3 hours to dump their loads which was solely attributed to the holding bins which could only hold 7200bbls total of both dry and wet berries. Additionally, out of the 27 holding bins, only 11 were actually set up to hold wet berries which made the constrain even more difficult. Once that section of the plant was full there was very little that crews in receiving could do to alleviate the problem. In the next section of the production process, dechaffing was possible at a rate of 4500bbl/hour which over a 12 hour period would be more than enough capacity even on the heaviest barrel deliveries days.

Where the bottlenecks really start to become apparent is in the drying stage of the wet berries where only 3 drying stations existed and in a combined effort could only dry at 600bbl/hour. In the harvest of 1980, there was 58% of the total capacity coming in as wet berries which was already over the capacity based on a 12 hour day. In 1981, the harvest in set to bring in 70% of the berries as wet berries which would further slow the overall process.

Assuming that the Kiwanee dumpers, dechaffing and de-stoning machinery were all working to their full capacity of 4500bbl/hour, the increase to 70% wet berries would overload the driers within the first few hours of production. If the RP1 was to add one new

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